THE government has all reasons to smile broadly after CRDB Bank’s dividend increased by almost
THE government has all reasons to smile broadly after CRDB Bank’s dividend increased by almost 30 per cent to 45.8bn/-, thanks to last year’s stellar performance.
The dividends to the treasury and its institutions were 45.8bn/- up from 36.0bn/- which translates to 45/- a share up from 36/- paid in 2021.
The government through Denmark’s Danida Investment Fund (DIF) owns a 21 per cent stake in CRDB while various other state-owned institutions jointly own 17.1 per cent of the lender’s shares.
The increase followed the net profit of 351.4bn/- made last year from 268.2bn/-.
Minister for Finance and Planning Dr Mwigulu Nchemba made the revelation, when receiving the cheque, adding that the government was pleased by the lender’s performance which led to the increase of shareholders’ dividend year in, year out.
“This increase in dividends is a clear indicator that our CRDB is getting stronger every year due to prudent financial strategies to harmer home trust from both local and international investors,” Dr Nchemba said in Dar Es Salaam, over the weekend.
The dividend paid to the government, according to the Finance Minister, will go to support the implementation of projects identified in the 2023/2024 budget.
“CRDB you are doing well,” said Dr Nchemba, who will table the 2023/24 budget on Thursday.
He said the bank has implemented its 2018-2022 medium-term strategy diligently where in the past five years the lender’s profit has grown by 875 per cent.
“In the first quarter of this year, you made a profit after tax of 90bn/-. If you continue with this pace next year we expect another handsome dividend,” said Dr Nchemba.
Dr Nchemba, an economist, hailed CRDB for expanding its business scope in and outside the country. The lender last month obtained a licence to establish a subsidiary in the Democratic Republic of Congo (DRC).
Also obtained a licence to a full-fledged CRDB Insurance Company, and established the CRDB Bank Foundation—geared at stimulating economic inclusion through the IMBEJU programme.
CRDB Group Chairman Dr Ally Laay said the dividends were the results of the shareholders’ annual general meeting that sat in Arusha and unanimously approved a total dividend of 117.5bn/- for last year.
CRDB Group Managing Director and CEO, Abdulmajid Nsekela, said that the growth in the value of the investment of the bank’s shareholders is due to the success that the bank has achieved in the implementation of its medium-term business strategy for the year 2018-2022.
Nsekela said during that period CRDB Bank achieved great operational success which led to paying a total of 1.1tri/- in taxes in the last five years and also spent over 14bn/- in social projects through its investment policy for the community.
“The implementation of our new business strategy 2023– 2027 is emphasising stable reform,” Mr Nsekela said.
The Deputy Minister of the Prime Minister’s Office forLabour, Employment, Employment and the Disabled, Mr Patrobas Katambi received dividends on behalf of the social security funds, and encouraged other public institutions in the country to invest in shares.
CRDB also handed over dividends to various government’s institutions and organisations including PSSSF, NSSF, ZSSF, NHIF, Local Government Loans Board, Tobacco Farmers’ Cooperative Association West (WETCU), Umoja Unit Trust Scheme, together with Mbinga, Shinyanga, Mufindi, Chunya, and Rungwe councils.
The Ministry of Finance and Planning Permanent Secretary, Dr Natu El-Maamry Mwamba together with various leaders of institutions and public organisations invested in CRDB also attended the event held in Dar es Salaam.
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